Oil and gas prices remain high Repsol earnings are higher than expected

According to offshore engineering website news on February 17, high oil and natural gas prices made Spain's Repsol REP.
MC earnings reported on Thursday higher than market expectations, giving it more financial resources for low-carbon business, and investors are increasingly demanding energy companies
.

With the gradual global recovery after the pandemic and the rising demand for economic growth, the benchmark price of Brent crude oil, LCoC1 and Henry Center natural gas, increased by 70% and 86%,
respectively, in 2021.

For Repsol, that means free cash flow in 2021 rose 70 percent annually to €5.
45 billion ($6.
19 billion).

The company's earnings beat expectations, with adjusted net income of 872 million euros, compared with analysts' consensus of 783 million euros
.

Earnings before interest, taxes, depreciation and amortization (EBITDA) at current supply costs amounted to €7.
07 billion, above the company's target
of €6.
7 billion.

In line with
large competitors, including BP.
Repsol and TotalEnergies are responding to regulatory and market pressures to reduce global warming emissions
by investing in renewable energy.

It plans to allocate 35% of its investment to low-carbon activities
between 2021 and 2025.
The plan includes the sale of its stake
in its newly built renewable energy generation units.

Repsol also raised its dividend by 5% last autumn to €0.
63
.

Meanwhile, the company has been grappling with an oil spill off the coast of Peru on Jan.
15, which it blamed on anomalous waves
triggered by the eruption of Tonga's volcano thousands of miles away.

Repsol said Thursday that efforts to clean up the oil were underway, with an estimated 10,396 barrels
of the spill.
(USD 1 = EUR 0.
8800)